(Alliance News) - Residential Secure Income PLC said on Wednesday that its net asset value per share fell during a tricky first-half of its financial year.
The real estate investment trust, focused on retirement living and shared ownership homes, said during its half-year ended March 31, its NAV per share fell by 17% to 90.0 pence from 108.8p at the end of September.
"ReSI is not immune to the continuing wider economic challenges. Specifically, higher energy bills to heat and light communal areas have contributed to a 13% operating cost increase in our retirement housing portfolio," said Chair Robert Whiteman.
Residential Secure said it swung to a pretax loss of GBP30.0 million from a profit of GBP7.8 million the previous year.
The company's total income fell by 4.0% to GBP17.0 million from GBP17.7 million at the same point last year.
The first-half dividend was unchanged at 2.6 pence per share.
Residential Secure said its outlook remains strong for the second-half of its financial year, despite the recent operational challenges and economic headwinds facing the company.
"We are considering selective disposal of certain non-core assets, to reduce floating debt levels, and will then revisit the appropriate level for a fully covered and progressive dividend," said Chair Whiteman.
Residential Secure shares were down 2.8% at 70.20 pence on Wednesday afternoon in London.
By Will Neill, Alliance News reporter
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Residential Sec (RESI)